Correlation Between FingerMotion and Telus Corp
Can any of the company-specific risk be diversified away by investing in both FingerMotion and Telus Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining FingerMotion and Telus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FingerMotion and Telus Corp, you can compare the effects of market volatilities on FingerMotion and Telus Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in FingerMotion with a short position of Telus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FingerMotion and Telus Corp.
Diversification Opportunities for FingerMotion and Telus Corp
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FingerMotion and Telus is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FingerMotion and Telus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telus Corp and FingerMotion is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on FingerMotion are associated (or correlated) with Telus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telus Corp has no effect on the direction of FingerMotion i.e., FingerMotion and Telus Corp go up and down completely randomly.
Pair Corralation between FingerMotion and Telus Corp
Given the investment horizon of 90 days FingerMotion is expected to generate 2.82 times more return on investment than Telus Corp. However, FingerMotion is 2.82 times more volatile than Telus Corp. It trades about 0.04 of its potential returns per unit of risk. Telus Corp is currently generating about -0.08 per unit of risk. If you would invest 194.00 in FingerMotion on August 31, 2024 and sell it today you would earn a total of 3.00 from holding FingerMotion or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FingerMotion vs. Telus Corp
Performance |
| Timeline |
| FingerMotion |
| Telus Corp |
FingerMotion and Telus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FingerMotion and Telus Corp
The main advantage of trading using opposite FingerMotion and Telus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FingerMotion position performs unexpectedly, Telus Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Telus Corp will offset losses from the drop in Telus Corp's long position.| FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. KT Corporation | FingerMotion vs. Liberty Broadband Srs | FingerMotion vs. Consolidated Communications |
| Telus Corp vs. Rogers Communications | Telus Corp vs. Vodafone Group PLC | Telus Corp vs. Orange SA ADR | Telus Corp vs. America Movil SAB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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